Venue: Committee Room - Town Hall, Station Road, Clacton-on-Sea, CO15 1SE. View directions
Contact: Ian Ford Email: iford@tendringdc.gov.uk or Telephone: 01255 686584
No. | Item |
---|---|
Apologies for Absence The Cabinet is asked to note any apologies for absence received from Members.
Minutes: An apology for absence was submitted on behalf of Councillor Carlo Guglielmi (the Deputy Leader of the Council and Portfolio Holder for Corporate Finance & Governance). |
|
Minutes of the Last Meeting PDF 382 KB Minutes: It was RESOLVED that the minutes of the meeting of the Cabinet, held on Friday 17 December 2021, be approved as a correct record and be signed by the Chairman. |
|
Declarations of Interest Councillors are invited to declare any Disclosable Pecuniary Interests or Personal Interest, and the nature of it, in relation to any item on the agenda.
Minutes: There were no Declarations of Interest made on this occasion. |
|
Announcements by the Leader of the Council The Cabinet is asked to note any announcements made by the Leader of the Council. Minutes: There were no announcements made by the Leader of the Council on this occasion. |
|
Announcements by Cabinet Members The Cabinet is asked to note any announcements made by Members of the Cabinet. Minutes: There were no announcements made by the members of the Cabinet on this occasion. |
|
Matters Referred to the Cabinet by the Council There are none on this occasion. Minutes: There were no matters referred to the Cabinet by the Council on this occasion. |
|
To enable the Cabinet to consider the recommendations made by the Resources and Services Overview & Scrutiny Committee following that Committee’s scrutiny of the Updated Financial Forecast/Budget Proposals 2022/23 and Housing Revenue Account Budget Proposals 2022/2023. Decision: RESOLVED that the recommendations made by the Resources and Services Overview & Scrutiny Committee be noted and that the responses of the Corporate Finance & Governance Portfolio Holder thereto be endorsed. Minutes: Cabinet was aware that, at its meeting held on 12 January 2022 (Minute 50 referred), the Resources and Services Overview & Scrutiny Committee (“the Committee”), in accordance with the requirements of the Budget & Policy Framework Procedure Rules, had undertaken an enquiry into:-
(1) the updated financial forecast and proposed budget position for 2022/23; and
(2) the Housing Revenue Account (HRA) Budget for 2022/23 including the movement in HRA Balances, the level of fees and charges for 2021/22 and the HRA Capital Programme.
This enquiry had considered the above in the light of the Council’s Medium Term Financial Strategy and its Treasury Strategy.
The Committee’s enquiry had been assisted by the Leader of the Council and by individual Cabinet Members who had also outlined the Cabinet’s initial highlight priority actions for 2022/23 and the synergy of those with the proposed Budget for 2022/23. A number of officers had also supported the enquiry.
The enquiry had been conducted through a private evidence gathering stage on 5 January 2022 followed by a public meeting during the day of 12 January 2022.
After a detailed discussion the Committee had RECOMMENDED to Cabinet:-
“In respect of the financial forecast and proposed General Fund budget position for 2022/23
1. That the issue of the level of carry forward amounts each year, as highlighted several times by the external auditors in their annual audit letters to the Council in recent years, be addressed urgently by the Cabinet.
2. That the intentions for developing a Corporate Investment Plan in order to establish a process for considering proposals for investment against the Corporate Plan Priorities and developing a prioritisation framework for investment over the coming year and into the medium term be welcomed and:
a. That the schemes set out in the current reserves, provisions and one-off sums be reassessed as part of that Corporate Investment Plan process in order to avoid sums of money being allocated for schemes that are no longer to be pursued and thereby hampering investment in schemes that can deliver real benefit to the District;
b. That, further to (a) above, the approvals to establish a reserve for a Residents Free Parking Scheme (£221K in reserves) and to allocate funds for a Clacton Town Centre Fountain (£159K as a one-off sum) be reversed immediately (as they are not required/being pursued) and the sums reallocated to fund the posts of 6 Community Ambassadors, 4 Street Rangers and 1 Technical/Administration (at a total cost of £352K) for 2022/23 with the remaining £28K from the released funds being ring-fenced to support training, equipment and supplies costs associated with those posts in 2022/23.
c. That the Plan should identify a range of seafront enhancements, developed in conjunction with seaside communities (including where relevant Town/Parish Councils) on the basis that these are funded by an expansion of beach huts in those communities.
d. That the Plan should deliver on the intentions of the Public Conveniences Strategy by improvements in those continuing facilities (particularly in view of the saving of £72,200 ... view the full minutes text for item 116. |
|
To provide the Cabinet with an update on the positive progress with the Key Priority Actions adopted for 2021/22 towards the Council’s Corporate Plan Themes for 2020/24. Additional documents: Decision: RESOLVED that the contents of the report be noted together with the highlighted realignment of particular milestones for particular key priority actions set out in the report. Minutes: Cabinet gave consideration to a report of the Leader of the Council (A.2) which provided it with an update on the positive progress with the Key Priority Actions adopted for 2021/22 towards the Council’s Corporate Plan Themes for 2020/24.
Having duly considered all of the information contained in the Leader of the Council’s report:-
It was moved by Councillor Stock OBE, seconded by Councillor Porter and:-
RESOLVED that the contents of the report be noted together with the highlighted realignment of particular milestones for particular key priority actions set out in the report. |
|
To seek Cabinet’s approval of the latest financial forecast and final General Fund budget proposals 2022/23 (including Council Tax proposals) for recommendation to Council on 15 February 2022. Additional documents: Decision: RESOLVED that Cabinet –
(a) approves the latest financial forecast set out in Appendix A, along with the savings and cost pressures set out in Appendix B and C respectively that form the firm proposals for the 2022/23 budget and recommends to Full Council a Band D Council Tax for district services of £182.64 for 2022/23 (a £5 increase), along with the associated council tax requirement of £9.112m;
(b) authorises the Portfolio Holder for Corporate Finance and Governance to agree the ‘technical’ appendices and resolutions for the budget proposals for recommending to Full Council on 15 February 2022;
(c) authorises the Chief Executive, in consultation with the Leader of the Council and the Corporate Finance and Governance Portfolio Holder, to report directly to Council in respect of the formal resolutions necessary to implement the Executive’s budget proposals along with any late information or notifications received from the Government;
(d) authorises the Portfolio Holder for Corporate Finance and Governance, to agree / adopt a Retail, Hospitality and Leisure mandatory business rate relief scheme for 2022/23;
(e) authorisesthe Portfolio Holder for Corporate Finance and Governance to approve the draft Treasury Strategy 2022/23 for consultation with the Resources and Services Overview and Scrutiny Committee; and
(f) approves that, in respect of the in-year budget for 2021/22, £0.064m be added to the Capital Programme in order to enable the purchase and installation of additional audio and visual equipment associated with the ‘live streaming’ of meetings and improving the quality of sound within the new committee room, which will be funded by adjustments elsewhere within the overall 2021/22 budget, as identified by the Assistant Director (Finance & IT), in consultation with the Portfolio Holder for Corporate Finance and Governance. Minutes: Cabinet gave consideration to a report of the Corporate Finance & Governance Portfolio Holder (A.3) which sought its approval of the:-
· latest financial forecast / budget proposals and council tax amount for 2022/23 for recommending to Full Council; and
· associated delegations to the Portfolio Holder for Corporate Finance and Governance to:-
i) agree the detailed budget proposals and formal draft resolutions / ‘technical’ appendices required for Full Council on 15 February 2022; and
ii) agree / adopt an associated mandatory business rate relief scheme for 2022/23.
Cabinet recalled that, at its meeting held on 17 December 2021 (Minute 99 referred), it had considered the Updated Financial Forecast / Budget 2022/23. The forecast at that time provided for a deficit of £1.488m that was to be met by drawing down money from the Forecast Risk Fund. That Updated Financial Forecast had subsequently been subject to consultation with the Resources and Services Overview and Scrutiny Committee, which had met on 12 January 2022, and that Committee’s comments had been considered earlier in the meeting (as reported above under Minute 116).
It was reported that, since the Cabinet’s meeting on 17 December 2021, additional changes had been required, primarily as a result of new or revised information becoming available which had included the Government’s Financial Settlement announcements.
Members were informed that the changes required had resulted in a reduced deficit for 2022/23 of £0.431m, a change of £1.057m compared to the £1.488m deficit presented to Cabinet in December 2021. Appendix A to the Portfolio Holder’s report, along with comments set out later on in the report, provided further details across the various lines of the forecast, with the most significant change being the receipt of the revenue support grant and other associated funding from the Government. In addition, the most up to date savings schedule and cost pressure summary were set out in Appendices B and C respectively.
Cabinet was made aware that, in order to enable the detailed estimates along with the various resolutions / ‘technical’ appendices required for Full Council in February 2022 to be finalised, a delegation to the Portfolio Holder for Corporate Finance and Governance had been included within the Portfolio Holder’s written recommendations. A further delegation had also been included to enable a business rate relief policy, associated with a 2022/23 mandatory Government relief scheme, to be finalised in advance of bills being printed and sent out before the start of the new financial year.
Members were advised that the budget position set out in this report might change, as further adjustments could be required as part of finalising the budget for presenting to Council on 15 February 2022, with a further delegation included in the Portfolio Holder’s recommendations to reflect this.
Cabinet was informed that, based on the final proposed budget for 2022/23, the Council Tax requirement was £9.112m, which was based on a £5 increase for this Council’s services, with a Band D council tax of £182.64. Those figures would remain unchanged and therefore would be reflected ... view the full minutes text for item 118. |
|
To seek Cabinet’s approval of the final Housing Revenue Account (HRA) budget proposals 2022/23 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 15 February 2022. Additional documents: Decision: RESOLVED that Cabinet –
(a) authorises the Assistant Director (Finance & IT), in consultation with the Housing Portfolio Holder, to adjust the forecast / budget, including the use of reserves, in the event that the financial position changes prior to Council considering the HRA budget on 15 February 2022;
(b) subject to (a) above, approves and recommends to Full Council on 15 February 2022a 4.1% increase in dwelling rents in 2022/23 along with the detailed HRA Budget proposals for 2022/23, as set out in Appendices B to E to item A.4 of the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder. Minutes: Cabinet had before it a joint report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.4) which sought its approval of the final Housing Revenue Account (HRA) budget proposals for 2022/23 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 15 February 2022.
Cabinet recalled that, at its meeting held on 17 December 2021 (Minute 101 referred), it had considered the HRA Business Plan and Budget Proposals 2022/23. The budget proposals at that time had provided for a surplus of £0.143m that was agreed to be contributed to the Capital Programme. Those proposals had subsequently been subject to consultation with the Resources and Services Overview and Scrutiny Committee, which had met on 12 January 2022, and that Committee’s comments had been considered earlier in the meeting (as reported above under Minute 116).
It was reported that since the Cabinet’s meeting on 17 December 2021, a small number of changes had been required, the most significant of which related to the recharges from the General Fund. Those changes had resulted in the overall surplus increasing to £0.333m a change of £0.190m compared to the surplus of £0.143 presented to Cabinet in December. Appendix A to the Portfolio Holders’ joint report set out the updated Business Plan, in terms of 2021/22 and 2022/23, with Appendix B thereto setting out the proposed detailed budgets that reflected this latest position.
Cabinet was advised that this position remained subject to further adjustments that might be required as part of finalising the budget for presenting to Council on 15 February 2021, with a delegation included in the Portfolio Holders’ written recommendations to respond to this possibility.
Members were informed that the revised forecast surplus in 2022/23 remained committed to investing in capital works, which included the delivery of new affordable housing but also the continued investment in the homes of the Council’s existing tenants. The surplus set out above of £0.333m therefore remained as a contribution to the HRA capital programme.
Appendix C to the Portfolio Holders’ joint report set out the proposed fees and charges for 2022/23, which broadly reflected inflationary uplifts where relevant or changes to better reflect the cost of providing the associated service.
The proposed HRA Capital Programme for 2022/23 was set out in Appendix D thereto, which now included the additional contribution of £0.333m as mentioned above.
Members were made aware that the average weekly rent remained unchanged to the figure reported in December 2021 at £87.55, an increase of 4.1% over the comparable figure of £84.10 for 2021/22. As mentioned within the report to Cabinet in December 2021, due to the relatively volatile CPI rates experienced since the start of the COVID 19 pandemic, if the proposed level of rent increase in 2022/23 was taken together with the relatively low figure of 1.5% last year, then the average annual increase would be 2.8% over the two years.
It was reported that the HRA general balance was forecast to total ... view the full minutes text for item 119. |
|
To request that, given the significant inflation in construction costs in the last six months, Cabinet approves a transfer of £272,383 from the Business Investment Fund to the Starlings project.
To also request that demolition of the Milton Road Car Park is postponed and an options paper is brought forward for the site during 2022/23. In the interim that at least £74,000 of the sum to demolish Milton Road Car Park be reassigned to the Starlings project, to enable the scheme to proceed. Further, that up to £12,000 of budgeted demolition costs for Milton Road are used to commission a report to determine the carpark’s current condition and structural stability and the maintenance requirements and costs.
Decision: RESOLVED that Cabinet agrees to –
a) place an additional sum of £272,383 in the Capital Programme from the Business Investment and Growth Fund towards the Starlings Project;
b) postpone demolition of Milton Road Car Park and bring forward options for the site later in 2022/23;
c) approve up to £12,000 from the funding allocated to demolish Milton Road Car Park to commission a report into the current condition of the Car Park and its immediate maintenance requirements and costs to safely operate;
d) the allocation of the remainder of the Milton Road Car Park demolition costs from the original 2019 September Budget to the Starlings project; and
e) note that Officers will proceed with procurement of the contractor.
Minutes: Cabinet had before it a detailed joint report of the Corporate Finance & Governance Portfolio Holder and the Housing Portfolio Holder (A.5) which requested that, given the significant inflation in construction costs in the last six months, Cabinet approve a transfer of £272,383 from the Business Investment Fund to the Starlings project.
The joint report also requested that demolition of the Milton Road Car Park was postponed and an options paper be brought forward for the site during 2022/23. Furthermore, that in the interim at least £74,000 of the sum to demolish Milton Road Car Park be reassigned to the Starlings Project, in order to enable the scheme to proceed. Further, that up to £12,000 of budgeted demolition costs for Milton Road be used to commission a report to determine the car park’s current condition and structural stability and the maintenance requirements and costs.
Cabinet recalled that, at its meeting in July 2019, it had approved the strategy for the revitalisation of Dovercourt town centre, which set out a positive vision to guide development and identified twenty projects to attract residents and visitors, and to improve the image and quality of the centre (called the ‘Dovercourt Masterplan Revisited’). The Cabinet had also agreed at that meeting to the preparation of a detailed business case for the redevelopment of the Starlings Site and Milton Road Car Park. That business case had been considered by Cabinet in September 2019 and Cabinet had approved the acquisition and redevelopment of the Starlings site and the demolition of the Milton Road Car Park. Cabinet had also allocated £1.595m funding to the project from existing budgets. £86,000 of that fund had been allocated to the demolition of Milton Road Car Park.
Starlings
Members were aware that the works aimed to bring back into productive use a vacant and derelict site, which currently blighted and had a negative impact on Dovercourt High Street. The new Starlings Car Park would provide 51 parking spaces with four disabled bays and a minimum of four charging points for Electric Vehicles, able to charge up to eight cars.
It was considered that the project had significant benefits. It would create a more accessible public car park and provide the potential for a multi-use ‘event space’ in the town centre. It was felt that this would improve footfall in the town and reduce opportunities for crime and disorder. This investment should create confidence in the market to encourage private sector investment within the town centre and give the town’s existing traders the confidence to invest in their businesses and in their property. It would bring new amenity into the town centre with new toilets, and a high quality design scheme for the public realm.
It was reported that Phase 1 of the Starlings redevelopment had been completed with the initial feasibility, survey and site investigation. A Portfolio Holder decision dated April 2020 had provided authorisation to proceed with the land acquisition and detailed design and the land for the Starlings site had ... view the full minutes text for item 120. |
|
To allocate a further £254,465 from Tendring District Council New Homes Bonus to the Jaywick Sands Covered Market and Managed Workspace Project given the recent significant increase in construction costs demonstrated by tender returns.
To seek further external funding from partners and enter into agreement with them to meet the remaining gap in funding for the project. Depending on the success of the effort to source sufficient funds, the Council will enter into contract with a construction firm to deliver the project. Additional documents: Decision: RESOLVED that, in the event that this Council (TDC) is successful in its pursuit of external funding to meet the shortfall in the Jaywick Workspace and Covered Market project, Cabinet -
(1) authorises the Chief Executive, in consultation with the Portfolio Holder for Housing and the Portfolio Holder for Business and Economic Growth and the Council’s Section 151 Officer and the Monitoring Officer, to enter into the necessary Funding Agreement;
(2) agrees that the Housing Revenue Account Capital Programme be increased by £1,934,647 to £4,407,000 to be funded by a TDC contribution of £254,465 from the 2022/23 New Homes Bonus and external funding of £1,680,182; and
(3) notes that, in that eventuality, the Council will proceed to award the contract to construct the Jaywick Workspace and Covered Market project. Minutes: Cabinet had before it a joint report of the Business & Economic Growth Portfolio Holder and the Housing Portfolio Holder (A.6) which sought its approval to allocate a further £254,465 from Tendring District Council’s (TDC) New Homes Bonus to the Jaywick Sands Covered Market and Managed Workspace Project given the recent significant increase in construction costs demonstrated by tender returns.
The joint report also sought approval to seek further external funding from partners and to enter into agreement with them to meet the remaining gap in funding for the project. Depending on the success of the effort to source sufficient funds, this Council would enter into contract with a construction firm to deliver the project.
Cabinet recalled that it had last received an update on the Jaywick Sands Covered Market and Workspace at its meeting held in October 2021 when it had agreed to grant an exemption to the Council’s procurement rules in order to allow a direct award of a service contract for the management of the facility and business support service to the Council’s’ operating partner, and also agreed that a licence to occupy would enable the most effective project delivery.
That October 2021 Cabinet report had also noted that construction material costs had increased as the country ‘unlocked’ from Covid-19 and that once the tender prices had come in for construction there was a potential risk that this budget would be insufficient to deliver the project as planned. Cabinet had been informed at that meeting that it would be updated with options if the increase in prices occurred, seeking any necessary approvals.
It was reported that since October 2021 the tender process for the construction of the facility had been undertaken by the Council with its Professional Team: HAT Projects (Architects), Potter Raper (Cost Consultants) and Daniel Connal Partnership (Construction, Design and Management Consultants). On 3 December 2021 the Council’s cost consultants Potter Raper had produced a revised cost appraisal based on the Council’s tender pack and the latest market information on the cost of materials. This work had indicated that the total construction cost of the scheme had likely increased from £2.1m to at least £2.7m.
Members were informed that, on 6 December 2021, the Council had received tenders from building contractors as part of the Council’s procurement exercise, which had come in significantly above the budget, with the lowest tender after value engineering listed at £3,877,239, over £1.1m greater than the cost consultant’s recent estimate. This had resulted in a total scheme value of £4,407,182, which was £1.98m over the total budget currently allocated of £2,427,000 to secure delivery.
As part of the tender evaluation process, Potter Raper had been requested to examine and comment on the large discrepancy between their latest cost advice and the prices quoted in the three submitted tenders. It was considered likely that contractors had sought to reduce their risk by cushioning current volatile market prices against materials cost inflation during the nine month delivery phase. It was also noted that ... view the full minutes text for item 121. |
|
Management Team Items There are none on this occasion. Minutes: There were none on this occasion. |
|
Exclusion of Press and Public The Cabinet is asked to consider passing the following resolution:
“That under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of Agenda Item 15 on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A, as amended, of the Act.” Minutes: It was moved by Councillor Stock OBE, seconded by Councillor Talbotand:-
RESOLVED that, under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of Agenda Item 15 on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A, as amended, of the Act. |
|
Exempt Minutes of the Meeting held on Friday 17 December 2021 To confirm and sign as a correct record the exempt minutes of the meeting of the Cabinet held on Friday 17 December 2021. Minutes: It was RESOLVED that the exempt minutes of the meeting of the Cabinet, held on Friday 17 December 2021, be approved as a correct record and be signed by the Chairman. |